cost to set up structure

5 Replies

hello, my name is craig and im new to bigger pockets, my question is roughly how much should I be expecting to pay in order to set up a 2 tier holding company ? any info is greatly appreciated,   thanks

What do you mean by "two tier holding company"?  What state are your properties in?

Here in CO it costs $50 on the secretary of state's web site to create an entity, so creating two would cost you $100.  Creating an operating agreement is a different can of worms and you may need help from an attorney to do that.  But actually creating entities is easy in most states and I see no reason to pay an attorney or anyone else to do that for you.

But I suspect you're doing this for asset protection.  I'd recommend discussion your situation with an experienced attorney specializing in this area.  That may cost significantly more.

Originally posted by @Jon Holdman :

What do you mean by "two tier holding company"?  What state are your properties in?

Here in CO it costs $50 on the secretary of state's web site to create an entity, so creating two would cost you $100.  Creating an operating agreement is a different can of worms and you may need help from an attorney to do that.  But actually creating entities is easy in most states and I see no reason to pay an attorney or anyone else to do that for you.

But I suspect you're doing this for asset protection.  I'd recommend discussion your situation with an experienced attorney specializing in this area.  That may cost significantly more.

Originally posted by @Craig Macdonald:
Originally posted by @Jon Holdman:

What do you mean by "two tier holding company"?  What state are your properties in?

Here in CO it costs $50 on the secretary of state's web site to create an entity, so creating two would cost you $100.  Creating an operating agreement is a different can of worms and you may need help from an attorney to do that.  But actually creating entities is easy in most states and I see no reason to pay an attorney or anyone else to do that for you.

But I suspect you're doing this for asset protection.  I'd recommend discussion your situation with an experienced attorney specializing in this area.  That may cost significantly more

hi Jon thanks for the reply, I am located in Halifax Nova Scotia . Yes, the main reason for the two tier holding company would be for protection as well as for moving any potential profits through one to the other for tax benefits, I do plan on consulting with an attorney shortly , I am just curious to find out roughly how much I should expect to pay.

Craig,

There are some specific reasons why one would use two sets of entities to hold assets, but it's overkill for most small-time investors without several million in assets or multiple investors involved in simultaneous deals.

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